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shares dived on the Frankfurt stock exchange after it expressed caution about 2016’s prospects, but some analysts reckoned this misunderstood the company’s message.

Daimler, which makes Mercedes luxury cars as well as trucks and buses, earlier reported earnings before interest and tax (EBIT) rose 36 per cent in 2015 to 13.81 billion euros, about $15.4 billion, compared with 2014. This was slightly above expert expectations.

Daimler said for 2016 sales and EBIT growth was likely to be slower than last year’s.

Daimler’s shares immediately slumped in Frankfurt and were close to five per cent lower after a couple of hours trading at 60.36 euros.

interpreted the forecast for 2016 as weak. In a report it said this guidance of slight growth “is rather subdued versus expectations not long ago. The world is a much more uncertain place,” Morgan Stanley said.

Investment researcher Evercore ISI said Daimler’s results and guidance were in line with consensus, but it was surprised by the significantly lower free cash flow forecast reflecting upcoming heavy investment in new technology. Mercedes’ profit margin was likely to stay at or above 10 per cent for 2016

analyst Sascha Gommel said Daimler’s forecast implied 2016 sales of between 149.5 and 156.9 billion euros ($167 billion to $175 billion) and EBIT of between 13.8 billion euros and 15.2 billion ($15.4 billion and $17 billion) with a profit margin of between 9.2 and 9.7 per cent.